The foreclosure process is a mystery to a lot of homeowners. So here’s a timeline that explains how foreclosure by advertisement works (as opposed to foreclosure by lawsuit, which is rare, and has a completely different timeline). Keep in mind that your timeline may vary, sometimes by a lot.
Month 0: You miss a payment. The whole process kicks into motion when you can’t make payments on your mortgage anymore, or decide not to make payments. At first the mortgage lender might start calling you or writing you letters. The lender might also reach out to see if you need assistance or if you’re eligible for a loan modification. At some point you’ll receive a default, or “intent to foreclose” letter. But remember that from this point, you still have a lot of time before the foreclosure actually happens.
Month 3: Your case is sent to an attorney. It’s usually about three months of missed payments before your file is sent to a foreclosing attorney. It could be less, it could be more. The attorney might take a couple of tries to get you to start making payments again, usually by calling you or writing threatening letters.
Month 4: Service and publication. In foreclosure by advertisement, the lender must serve you with foreclosure papers. The papers will tell you the date of the sheriff sale, which must be at least six weeks in the future. Then the lender has to publish a foreclosure notice in the newspaper for six consecutive weeks. If the lender skips any of these steps, or doesn’t complete them correctly, the foreclosure may later be attacked in court.
Month 6: The sheriff’s sale. The sheriff’s sale is a really important date, for two reasons. First, it is the last date you can bring your mortgage current in order to stop the foreclosure. After the sale, it might not be enough just to pay the lender the amount you’re behind.
Second, after the sheriff sale is completed, we can no longer use bankruptcy to help you catch up on your mortgage. If your sheriff’s sale is scheduled for 10 a.m. on Monday, and we file your bankruptcy at 9:59, the sale is void. If it’s filed at 10:01, we’ve missed our chance.
Under Minnesota law, a homeowner can also delay a sheriff sale one time for five months, in exchange for a shortened redemption period to five weeks (see below). This must be done between the date the sale is first published and 15 days prior to the sale. The process isn’t all that easy, so don’t wait until the last minute if you want to postpone your sale.
Month 12: The end of the redemption period. The redemption period is a six month period starting from the date of the sheriff’s sale. During the redemption period, you can continue living in your home. By this time, it’s too late to get the mortgage current by paying past-due payments, but you can “redeem” the property by paying the entire sheriff’s sale amount plus interest and fees anytime before the redemption period expires.
Month 13: Eviction. Eviction is the final step in a foreclosure. After the redemption period has ended, if the lender wants get you out of the house, it must file for an eviction in court. This usually takes about a month to complete. People don’t usually like to be evicted, so most people move out of the house on their own sometime after the redemption period ends.
No matter where you are in this process, you may still have options. If you want to talk more about how to prevent foreclosure, give us a call.
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Tags: eviction, Foreclosure, redemption period, sheriff's sale
[...] you may have between six months and a year to live in your house mortgage-free and rent-free, while the foreclosure runs its course. That’s a lot of time to save up some money for whatever comes next–such as a security [...]
I’m curious as to how the HOA dues play into this. At what point in the timeline would you say it’s safe to stop paying the HOA dues? After the Sheriff’s sale or after the redemption period? Or after eviction notice?
In the MN forclosure process is there any required notice given to the borrower by either the attorney of the lender or the lender themselves in regards to when the publication will begin or can they just publish it in the paper whenever they want.
Sort of. They do have to notify the borrower, generally by hand-delivering a copy of the notice, that the sheriff sale has been scheduled. There’s no particular requirement that they notify the borrower that the publication has begun. Let me know if you have follow-up questions.
After a sheriff’s sale, does the property manager have the right to come onto the property during the 6th month redemption period. For example, wander around the property taking photos versus taking shots from the street? Also, is it lawful for a property manager to place a large white note on the door of the person still occupying the home during the redemtion period with identifying private information on the residence of the home. And, lastly, does the property manager have the right to come into your home without your consent? Thank you.
I haven’t paid for my house since June 2011. I declared bankruptcy in January 2012 at which time the Trustee took possession of the house. In July 2012, the Trustee abandoned their interest in the property.
I can’t get Citimortgage nor the firm they hired to foreclose on the daned house! It’s been vacant since October 2011. Isn’t there any way to speed up the process?
My property in inforclosure and I’m wondering how much time I have. Their is a person coming to my door to serve me papers.
If I have my home loan discharged and not reaffirmed and has been almost 2 years may I walk away? Will the forclosure process be the same??
If your loan wasn’t reaffirmed, you have no personal liability on the mortgage. This means that if the house sells (at foreclosure) for less than what you owe, you won’t be responsible for the difference. As for whether the foreclosure process is the same, this depends on what state you live in. Here in Minnesota, there are no differences that I can think of.
In September my divorce was finalized. The decree states that my ex is to pay for the mortgages on the home and if she is to fall behind the home was to be put up for sale. She was also ordered to either refinance my name off of the mortgage or sell the home in 90 days, which she did not do. She has now fallen 4 months behind on the mortgage and the bank is threatening foreclosure. The bank will not help me out, even though I am not technically responsible. I cannot afford the payments on the house after giving her both spousal support and child support, which she is supposed to be using for the house payment. As such, my credit has taken a major hit and I have seen in just a few months my credit rating from excellent to now poor. This will also affect my ability to own a home in the future and move out of my small place. I have three children who reside with me. I have a court hearing in a little over a month regarding this, but there is really little recourse, what can I do? Can I sue her in civil court as well? She refuses to put the house up for sale and will not seek employment, so she is unable to refinance my name off. I am getting screwed!!!